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Wednesday, September 22, 2021

The unseen costs of being an entrepreneur: How much does it cost to run a business in S’pore?

Paying workers on time has develop into more durable due to the pandemic, lamented Matthew Shia, proprietor of home-based bakery ONLYKAI. Due to provide chain and cargo delays, provider deliveries are sometimes not acquired on time and this impacts the business’ capability to pay its workers.

“Production gets delayed. The constant worry about not having sufficient cash flow to tide us over bulkier supplier payments is always there,” mentioned Matthew.

Matthew will not be alone in dealing with the every day stressors of managing funds. Raynald Zhang, founder of native eyewear business Foptics, mentioned that as a result of its business’ gross sales come from varied on-line and offline sources, protecting monitor of funds turns into troublesome.

“We try to use digital means to make transactions as much as possible so most transactions are recorded correctly. There must exist a solution that can consolidate them for accounting to be done smoothly.”

onlykai foptics
SMEs ONLYKAI and Foptics say managing money move is essential amid Covid-19 / Image Credit: ONLYKAI, Foptics

A small and medium-sized enterprise (SME) proprietor normally wears a number of hats — from managing manpower, to paying for hire, advertising the business, and investing in analysis. All these are duties and bills that one has to account for day in and day trip.

A research by the Association of Chartered Certified Accountants Singapore final yr confirmed that nearly seven out of ten small companies had to minimize or cease their spending due to pandemic woes. In one other research, money move mismanagement was cited as a main motive why small companies fail.

Several companies Vulcan Post spoke to agreed that the largest bugbear to business house owners is money move. Without that, companies have a low survival price.

At occasions, even probably the most prudent business proprietor could run into money move issues. For instance, he/she could not have acquired cost from the consumer, however has to nonetheless pay suppliers to hold the following venture going.

“Salaries come into our consideration when cash flow gets tighter. As a business, we can’t have our employees working for us knowing that they couldn’t be paid on time. Even though we wish to increase our revenue generally and scale the business, we do not consider doing it at the expense of not making timely salary payments,” mentioned Matthew.

How Flex and ipaymy assist small companies resolve money move issues

Fortunately, the fintech increase in current years has led to new cost and money administration choices that give smaller companies better entry to working capital, like Flex and ipaymy.

Since incorporating ipaymy and Flex into his business, Matthew mentioned ONLYKAI’s money move points are higher cushioned. 

“Everyone chooses to remain on the safer side of things now. With financing and credit line solutions like the one ipaymy and Flex offer, we can safekeep our cash reserves for rainy days while staying open to venture into business deals that could possibly require more capital.”

Flex and ipaymy have helped ONLYKAI higher cushion money move points / Image Credit: ONLYKAI, Vulcan Post

Flex, in partnership with Finaxar Capital ll, gives small companies with a line of credit score, authorised in beneath 48 hours. This line of credit score can be utilized via a Flex Visa bodily or digital card, with funds simply consolidated through a single platform.

Meanwhile, via ipaymy, SMEs can faucet on their traces of credit score to pay for bills beforehand not doable through bank cards — reminiscent of hire, salaries, invoices, and even company tax. This offers them an added possibility to not contact their money sources in any respect.

Flex helps SMEs flex their money move

Launched in 2021 by Singapore-based Finaxar Capital, Flex is a spend administration answer collectively developed in partnership with main funds know-how firm Visa.

Helmed by Group CEO Dr Tan Sian Wee, the business — which is presently in the method of acquiring a licence with Singapore’s central financial institution — is backed by many enterprise capital companies, together with Monk’s Hill Ventures, 500 startups, and Cathay Venture.

“We digitise finance and provide an all-in-one spend management platform that enables businesses to regulate and manage their spending, and track their transactions,” mentioned Flex.

“Business owners can also use Flex to dispense Visa cards to staff for work-related expenses like transport allowance.”

flex visa card
SMEs can concern limitless digital playing cards, and up to 20 bodily playing cards with Flex / Image Credit: Flex by Finaxar

Traditionally, employees would have to ship receipts and file a declare with the corporate, and that may take a few business days for the claims to be cleared earlier than the employee is reimbursed. With Flex, small business house owners can empower their workers to handle their very own bills, with the peace of thoughts that spend controls and full visibility gives.

Today, SMEs can concern limitless Visa digital playing cards, and up to 20 Visa bodily playing cards with Flex. Transactions made also can simply be tracked on the app by an administrator, which ensures transparency on funds. 

Business house owners also can set spending limits on the Visa playing cards or freeze playing cards when required, the fintech agency mentioned.

“Payments made with a Flex card can be drawn down from the credit lines extended by Flex through its partner, Finaxar Capital ll. This service, also known as Flex PLUS, is interest-free for up to 35 days, a credit line that small business owners can tap on,” added Flex. 

“The amount of credit can range from S$3,000 to S$100,000, with approval given as fast as 24 hours, or within 48 hours depending on the amount required by the business owner.”

If a buyer is unable to make cost in full, a three per cent month-to-month curiosity is charged on the excellent quantity. This is analogous to bank cards at conventional banks.

flex visa card
Image Credit: Flex

Flex has plans to roll out an app model supported by each iOS and Android by the tip of this yr or early subsequent yr.

Tapping on ipaymy to unlock “funds”

ipaymy is a Singapore-based agency that has presence in different international locations like Australia, Hong Kong, and Malaysia.

It lets clients pay their largest bills by bank card. This eases the burden on funds that normally require money solely, like store hire, employees’ salaries, and tax funds.

SMEs get to meet month-to-month cost obligations whereas protecting money accessible to gasoline development, ipaymy mentioned. 

“For example, office rent is usually collected in cash. With ipaymy, users can tap on the service to unlock cash to pay for shop rent,” mentioned ipaymy. 

“What they need to do is to simply input their credit card information, choose a payment category, fill in the required information, and have the payment dedicated for rental made in as little as two business days.”

Image Credit: ipaymy web site

While the payee receives the funds from ipaymy two working days later, the payer solely wants to settle the quantity as soon as their bank card assertion is due.

Paying with their card additionally allows customers to faucet on bank card rewards and cashback from banks. 

“The best way to manage cash flow is to know where all your cash is going and budget accordingly. Always plan ahead and make sure you have a steady runway. Having a credit card helps as you’ll be able to have a longer timeline to work with,” mentioned Tze Hing, founder of e-commerce business Subtle Asian Treats.

Image Credit: Vulcan Post

SMEs that arrange a business account also can get a devoted account supervisor, and the supervisor may help as an prolonged service line to rapidly tackle companies’ on a regular basis wants. 

Other advantages of ipaymy embody being in a position to schedule recurring funds, handle invoices, set cost reminders, and monitor cost standing in a single dashboard.

Why Flex and ipaymy are the all-in-one financing answer for SMEs

Through Flex, SMEs can handle and monitor the bills of employees by issuing them Visa digital or bodily playing cards. They also can set limits to funds to forestall overspending.

What’s extra, by tapping on the credit score line with Flex through Flex PLUS, this interest-free cost time period of greater than 35 days helps give an further enhance in money move. 

Business house owners can go a step additional with ipaymy by putting their Flex Visa Cards on the platform to liberate credit score for cash-only purchases. 

SMEs also can faucet ipaymy’s all-in-one dashboard to ease their operational duties. They can schedule recurring funds, handle invoices, set cost reminders, and monitor cost standing through the one-stop platform.

Most importantly, the sources for working capital are expanded and there’s extra cash liquidity.

flex ipaymy
Image Credit: Flex

From organising a Visa bodily or digital industrial card to managing business workflow, monitoring business bills, to paying suppliers, each Flex and ipaymy are complementary as they supply companies higher money move.

Ipaymy and flex are having an ongoing promotion proper now. Users who use each ipaymy and Flex can get decrease transaction charges of 1.5 per cent by making funds with a Flex Visa card via ipaymy. This deal can be legitimate till the tip of March 2022.

Interested SMEs can join Flex in simply 10 minutes right here.

Featured Image Credit: Flex ipaymy, Vulcan Post

#Note-Author Name – Angela Teng

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